100616_FD_Issue 186

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functionaldrinks zenithinternational newsletter This issue at a glance...

Page six Swiss drinks win beauty prize

Page five Supporting German toddlers

Page four Wonderful drink for recovery

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15 June 2010

near waters

Poland

Enhanced water bridges nutritional gap

iodine and around 600 million people have problems with thyroid goitre.

Ustronianka, leading soft drinks producer and manufacturer of the country's most preferred mineral water brand, has unveiled a unique, pioneering mineral water enhanced with iodine.

Page three Monster shot at UK market

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Issue 186

Called Ustronianka z Jodem (Ustronianka with Iodine), the company's latest proposition is arguably the first such product of its kind to feature the essential trace element, and paves the way for further development in the Poland's functional water market.

Ustronianka z Jodem is positioned as a convenient source of iodine for babies, children and adults, with 150µg of the element in every litre - the full recommended daily allowance (RDA) for the average adult (pregnant woman should take up to 180-200µg). It is said that an insufficient intake of iodine in infants may lead to problems in intellectual growth, learning, memory and potentially also delay physical growth. In the case of adults lacking in iodine, the implications are lowered immunity, lethargy and apathy, as well as problems with memory and fertility. Ustronianka with Iodine is also highly recommended for pregnant woman, as the foetus does not produce its own thyroid hormones during the first trimester and relies on its mother as a source.

Iodine is an important nutrient for the proper functioning of human body, particularly the thyroid, regulating the body's energy conversion process, influencing the growth and function of the brain, as well as helping to maintain weight, healthy skin, hair, nails and teeth.

The benefits of Ustronianka's new water are supported by tests carried out at Collegium Medicum of Uniwersytet Jagiellonski in Cracow, with Prof dr hab Zbigniew Szybinski recommending the product for its high assimilation rate.The iodine-enhanced water is also recommended by the research institute of the Polish Mother's Memorial Hospital.

The human body usually contains 3050mg of iodine, mostly located in the thyroid gland, however a shortage of the trace element - containing the hormones thyroxine (T4) and triiodothyronine (T3) for the proper functioning of all human cells - can lead to the creation of a thyroid goitre (swelling). In terms of natural sources, sea water has the highest content of iodine whereas water sourced from mountainous regions lacks sufficient levels. Sea-born fish such as flounder (190µg), cod (120µg) and caviar (130µg) are also good sources. According to World Health Organization (WHO) estimates, around1.5 billion people live in regions where there is a shortage of

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Ustronianka z Jodem was launched in late April 2010 and was met with high consumer interest from the outset. 1.5 litre PET bottles of the product are available for a suggested retail price of 1.89 Zloty (€0.46) through various supermarkets across Poland, including Carrefour, Kaufland, Eurocash, E. Leclerc, Billa and Auchan, in addition to the traditional trade. The launch of Ustronianka z Jodem is supported by televised, POS and PR activities.

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functionaldrinks zenithinternational newsletter Page 2 Issue 186 15 June 2010

editorial comment Welcome to the 186th issue of functionaldrinks. In a US centric edition, various developments some quirkier than others - have unfurled in the sports and energy arenas. In terms of the unique if not slightly alternative launches in the energy drinks category, we review the launch of 666 Ventures' energising blend of the same name (see Page 6) as well as Harcos Laboratories' bright green addition to its synthetic blood beverage range - Zombie Blood Energy Potion (see Page 7). Still within the sports and energy categories, NestlĂŠ Performance Nutrition has teamed up with the World Triathlon Corporation to launch an Ironman branded ready-to-drink sports beverage (see Page 5), whilst pomegranate juice specialist POM Wonderful has unveiled its POMx Antioxidant Recovery harnessing the superfruit's benefits in post-endurance recuperation (see Page 4).

Meanwhile in Europe, the successful Monster Energy brand has seen the addition of a concentrated sibling in the UK market (see Page 3), with German smoothie producer True Fruits GmbH completing its current functional smoothie trio with the introduction of a goji- and acerola-based 'detox orange' variant (see Page 3). Also in Germany, infant nutrition firm Mulipa GmbH now caters for young children as well as those of pre-toddler age with its latest launch (see Page 5). Also in this issue: the Purelosophy range of Swiss lifestyle drinks has received a Prix D'excellence De La BeautĂŠ 2010 award (see Page 6); financing rounds have boosted HiBix Corporation's OOBA sparkling beverage range (see below); Poland's Ustronianka is pioneering the functional water category with the unveiling of an iodineenhanced water; and ingredients firm Rousselot has communicated the results of studies offering further support for the bone health benefits of its Peptan ingredient (see Page 4).

Jenny Foulds Editor jfoulds@zenithinternational.com

wellness beverages

United States

Financial injection helps drink to blossom

Retailing for US$1.79, lower than its original counterparts, and delivering just 95 calories per 12.5oz serving, the new drinks are available in the same six flavours: Original, Blackberry, Key Lime, Orange, Pineapple and latterly Kiwi, and contain all-natural ingredients.

OOBA, positioned as the world's first sparkling hibiscus beverage and rich in the ancient healing power of its main botanical ingredient, recently secured over US$5.8 million in financing. Announced by its producer HiBix Corporation at the end of April 2010, the monetary boost resulted from the financing rounds led by a combination of existing and new investors, and coincided with the company's unveiling of a new OOBA line of low-calorie lightly sweetened sparkling hibiscus beverages.

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The drink's hibiscus flower base harnesses the healing properties of the botanical powerhouse that has been used for thousands of years in Ancient Egypt, China, India, Mexico and South America. The plant has long been considered a source of health and wellbeing, with OOBA developed to bridge the gap between a refreshing carbonated beverage and a 100% truly good-for-you offering. OOBA is available nationwide across the US, with distribution growing steadily.

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functionaldrinks zenithinternational newsletter Page 3 Issue 186 15 June 2010

wellness beverages

Germany

Detoxifying addition to juice line

that of orange. Meanwhile the goji berry is thought to be a nutritional powerhouse, rich in antioxidants, trace elements, minerals and nutrients. Hailed in Asia as the fruit of wellbeing and happiness, its combination with acerola in True Fruits' latest offering ensures maximum health benefits for consumers.

German smoothie specialist True Fruits GmbH has added a gojienriched proposition to its now three-strong functional portfolio.

The vivid orange colour of the new smoothie is designed specifically for the summer season, with its uplifting effect apparently toning the body and redistributing gloomy thoughts.

The new 'detox orange', which joins the 'detox' and 'green energy' variants, embraces the vitamin- and nutrient-rich credentials of its main goji fruit ingredient and supersedes the line's former orange variety. It also features - in addition to mango, banana and apple - another increasing popular superfruit in the form of acerola, which is said to have a vitamin C content 30 times

True Fruits 'detox' will be available for a recommended retail price (RRP) of â‚Ź2.39 in food outlets, service stations and selected catering establishments from July 2010. www.truefruits.de

energy drinks

United Kingdom

Small but powerful monster Launched just eighteen months ago in January 2009, Monster Energy - handled in the UK by Coca-Cola Enterprises - has already established itself a firm foothold in the country's booming energy drinks market. Adding to its already strong portfolio, its producer recently (in March 2010) introduced an energy shot to its energising range. Called Monster Energy Shot and targeted at consumers of all ages needing an energy boost, the latest development is certainly 'monster' in its relative size with 30% more volume than competing products.

offering has only been available in the UK for a couple of months, initial sales feedback has been extremely positive following a push through 4,000 independent retail outlets in the London area and a national rollout. In terms of the product's active promotion, the sales drive is ongoing with regional activities taking place through the company's teams of Trade Development Managers. At present, focus is centered on establishing distribution of the new Monster shot proposition, however the company has revealed that it does have another product in the pipeline for the second half of the year. Monster Khaos an orange-citrus variant with a 50% juice content and already successful in the US - has also just been launched. Meanwhile Monster Energy Shot, whose energising credentials are achieved through a combination of taurine, ginseng, L-carnitine and B vitamins, is available through all off-trade channels across the UK and Europe for a RRP of ÂŁ1.69.

Although the concentrated energy

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functionaldrinks zenithinternational newsletter Page 4 Issue 186 15 June 2010

sports drinks/nutraceuticals

United States

Pom-pom approval for latest recovery drink Pomegranate juice specialist POM Wonderful's latest innovation is a potent postexercise recovery supplement called POMx Antioxidant Recovery. The liquid formula blends pomegranate juice with POMx, a concentrated extract of pomegranate antioxidants. Just 1oz of POMx is said to deliver the antioxidant equivalent of an 8oz serving of POM Wonderful 100% pomegranate juice.This proprietary ingredient is derived from the company's own Wonderful variety of pomegranates, and is said to have the same biochemical profile as the fruit itself and contains a diverse range of phytochemicals, the majority of which are polyphenols, powerful antioxidants. POMx Antioxidant Recovery is also a high quality source of replenishing carbohydrates, with a nearly 50/50 balance of naturally occurring fructose and glucose.

Preliminary clinical studies have demonstrated promising post-exercise benefits for POMx Antioxidant Recovery, with a 2oz dose having been shown to reduce post-exercise strength loss by more than 30% and post-exercise soreness by 28% compared to a placebo. As well as the above benefits, the pomegranate fruit has a number of reported health benefits such as helping to prevent heart disease and lowering high blood pressure. It is also thought to have anti-ageing properties and may also help protect against certain cancers. The supplement is designed to be added to smoothies, shakes and juices in 1oz doses. According to the company, for optimal antioxidant protection one dose should be consumed in both the morning and evening. As part of the brand's marketing, POMx Antioxidant Recovery is endorsed by a number of high profile US sportsmen and is an official product of the Team Garmin-Transitions procycling team. POMx Antioxidant Recovery is available to purchase through the company's website, with a retail price of US$24.95 per 16oz bottle.

www.pomwonderful.com

ingredients

France

Development supports strong bone health foundations

effect on bone cells (osteoblasts) and on bone matrix, with the recent studies offering further support of these findings.

During the International Osteoporosis Foundation (IFO) World Congress on Osteoporosis in Italy in May, ingredients firm Rousselot unveiled the positive results of its Peptan joint and bone health ingredient. Previous in vivo and in vitro studies carried out with the company's hydrolysed collagen product demonstrated its positive

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The latest research, conducted on ovariectomised mice, which are a good model for post-menopause osteoporosis, found that daily consumption of the ingredient over a 24 week period improves bone mineral density and likewise reduces the bone resorption marker CTX. The new studies also support the ingredient's preventative properties as well as its active impression on already worsening bone density, encouraging the use of Peptan Hydrolyzed Collagen for the maintenance of bone health and for preventing age-related bone loss. www.rousselot.com

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functionaldrinks zenithinternational newsletter Page 5 Issue 186 15 June 2010

sports drinks

United States

Power to the people Nestlé Performance Nutrition has partnered with the World Triathlon Corporation to create an Ironman branded ready-todrink sports beverage. Ironman Perform is a premium sports drink specifically designed for athletes undertaking intense physical exertion such as Ironman triathlons, or who exercise in the heat or humidity and experience significant fluid and electrolyte loss. It features Nestlé's C2MAX carbohydrate blend, used in the company's PowerBar-branded sports nutrition products. PowerBar is already a familiar brand to Ironman participants thanks to its role as the official global energy bar and energy gel supplier for all Ironman events. C2MAX is a dual source energy formulation comprising a 2:1 glucose to fructose blend which research has found to deliver 20-50% more energy to muscles than glucose alone and improve endurance performance by 8%.The drink also delivers essential electrolytes, including 190mg of sodium

per serving to replenish what athletes lose in sweat and to help avoid skeletal muscle cramps and dehydration. The drink is available in Lemon Lime, Orange Mango and Mixed Berry flavours, contains only natural flavours and is formulated without high fructose corn syrup. According to Phil Annett, Global Business Head at Nestlé Performance Nutrition, "We have a fundamental goal and shared mission with Ironman, which is to help athletes perform at their best. Applying the latest sports science to get the right balance of performance benefits, taste and stomach comfort in the new Ironman PERFORM sports drink was a long yet essential development process designed to help athletes achieve optimum performance." To promote the brand, Ironman Perform will be the official sports drink at numerous high profile Ironman events across the US in 2010. Launched into the US market on 8 June, the sports drink is available to purchase via powerbar.com and shopironman.com for a suggested retail price of US$1.49 per 20oz bottle. www.powerbar.com www.ironman.com

functional dairy

Germany

Continued support for two year olds In April 2010, infant nutrition leader Mulipa GmbH expanded its Aptamil formula milk range with a product designed specifically for children aged two and above.

balanced by increased proportion of vitamin C, the new milk has been introduced to support the changing nutritional requirements of young children as they move through this important development phase. Aptamil Kinder-Milch 2+, the launch of which was supported by advertising, direct marketing and Internet promotion, is available from cash and carry, warehouse, drug and supermarket stores across Germany for a RRP of €8.99 per 600g carton.

With a reduced protein, fat, iron and iodine content,

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functionaldrinks zenithinternational newsletter Page 6 Issue 186 15 June 2010

wellness beverages

Switzerland/Brazil

Beauty and beverage worlds collide Purelosophy, a line of functional lifestyle drinks from Switzerland, has received an international Prix D'excellence De La BeautĂŠ 2010 award. Founded by the French magazine Marie Claire in 1985, a board of beauty experts from international glossy publications each year selects the award-winning products from across the globe. The simplistically-designed Purelosophy line of 100% natural Swiss lifestyle drinks comprises three variants - Relax, Detox and Power - and claims to support consumers' health, physical recovery and hydration, as well as their ability to cope with the everyday stresses of urban life.

ingredients chamomile, peppermint, lavender, hops and lemon balm extract, and is said to be ideal for those struggling with initial insomnia. Detox includes extracts of fennel, aloe vera, artichoke, curcuma, dandelion, nettle and whole grapes, all of which are renowned for their cleansing properties.The Power version is based on cola nut, guarana, ginseng, green tea and yerba matĂŠ and green coffee bean and, as such, is designed to regulate the metabolism and improve general wellbeing. Meanwhile in other beauty and beverage related news, the Brazilian entrepreneur Cristiana Arcangeli is tapping the so-called completely new world of what she has termed 'alimetics' - products with an inside-out approach to beauty - with the launch of her 'beauty in' brand. Comprising two product lines, 'beauty drink' and collagen-rich 'beauty candy',Arcangeli's developments are designed to bring consumers the nutrients and vitamins that are so important in everyday life.

www.purelosophy.com www.beautyin.net.br

The Relax variant features the usual calming

energy drinks

United States

Devilish new addition to the market Nevada-based energy drinks producer 666 Ventures recently introduced its 666 Energy Drink to the US market. Inspiration for the energy shot drink came from company founder Jason Mayeroff's love of heavy metal music combined with his need for energy as a participant in endurance sports. At 4oz, it is larger than many competing energy shots, which are typically packaged in 2oz bottles. Each bottle contains 200mg of caffeine, vitamins B3, B6 and B12 and pure cane sugar. According to Mayeroff, "The goal from the

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beginning was to create the best tasting energy shot on the market. Our competitors' products taste like chemicals mixed with vitamin pills, whereas 666 Energy Drink tastes like liquid caffeinated candy." 666 Energy is currently available in the controversially named Virgin Sacrifice Cherry and Lucifer's Lemonade flavours, with Hellfire Orange,Wrath of Grapes and Apple Anarchy set to be launched in the near future. The drink found initial appeal with heavy metal music fans but its fanbase is extending to appeal to a broader section of the young and young-atheart who want a sustained energy boost to keep them going for hours on end. Marketed with the slogan 'Get Some Evil in Ya', the company says that "666 Energy Drink is intended to be shocking, irreverent and controversial.We intend to grab America by the nuts with our powerful brand and our cocky, bombastic marketing." 666 Ventures is in the process of expanding the distribution of 666 Energy Drink to stores, night clubs and bars nationwide. It can currently be found in convenience stores, mainly in eastern US states, as well as online at the company's website, where a case of 12 bottles retails for US$23.99.

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functionaldrinks zenithinternational newsletter Page 7 Issue 186 15 June 2010

energy drinks

United States

Insatiable thirst for alternative energy Harcos Laboratories has extended its quirky synthetic blood beverage range with the creation of Zombie Blood Energy Potion. With its transfusion bag-style pouch and bright red colour Harcos' Blood Potion energy drink was the unsurprising winner of the most outrageous category in functionaldrinks' 2009 Innovation Awards. Like the original Blood Energy Potion, the Zombie version contains iron, protein and electrolytes to give it a nutritional profile much like that of real blood. But for those squeamish at the thought of drinking something quite so realistic, Zombie Blood is bright neon green in colour and has a tangy lime taste.

energy comes from "the extra strong green zombie blood cells that helped zombies to become the strongest, most horrifying scourge on the face of our planet". In reality however, it is 4g of whey protein and 80mg of caffeine per serving that deliver the claimed four hour energy boost. According to Aaron Rasmussen, co-founder and VP of marketing for Harcos, "People loved the taste of Blood Energy Potion so much that we just had to make a follow-on for non-vampires." He added, "Whether you need energy for video gaming, sports, your next Halloween party, or cracking zombie skulls with a cricket bat, Zombie Blood delivers." Although it does not need to be refrigerated, it is recommended that Zombie Blood is consumed ice cold for best results. As Harcos' primary target audience is gamers and teenagers, Zombie Blood Energy Potion is being promoted through social media such as Facebook and Twitter, whilst the brand website adds to the 'realism' by containing details on how the blood is harvested, tips on how to protect yourselves against a zombie attack and even a link to the fictional Zombie Protection Agency website. A 100ml (3.4oz) specimen-style pouch has a RRP of US$3.99, and can be purchased via the brand website, with distribution set to be expanded to retailers including Hot Topic, Fry's Electronics, Hastings, FYE, Micro Center and ThinkGeek among others.

The brand website may allege that the drink's

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functionaldrinks in brief

Europe

Professor Henk van Loveren, member of EFSA's evaluating panel, has suggested that companies should increase spending on studies that substantiate the science behind probiotics, perhaps even at the expense of marketing. According to van Loveren, there are several studies that demonstrate the potential health benefits of probiotics despite their failure to achieve a positive opinion from EFSA. Germany: The Frankfurt-based agency Y&R has developed a televised advertisement for Danone's Actimel brand involving former tennis champion Steffi Graf, which encourages consumers to lead healthy, active lifestyles through the consumption of fruit, partaking in regular exercise and drinking the dairy giant's digestive health drink. UK: Chadwicks, part of the Flexible Packaging Division of the Clondalkin Group with sites

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across Europe and North America, has created a new shrink sleeve to give Snowball Holdings' R2 Hypotonic Recovery sports drink a fresh lease of life and reflect its premium positioning. Now benefiting from a 50 micron PVC sleeve, the hypotonic offering is non-carbonated and said to rehydrate in 30 minutes. The Coca-Cola Company has increased its stake in smoothie maker Innocent to gain a majority 58% share in the company through the purchase of the shares of the two founding members. Under the terms of the deal, which is reportedly subject to approval by the competent merger control authorities, Innocent's founders retain operational control of the business.

North America

US: Kraft Foods has introduced a lemon-lime flavour variant to its Crystal Light Pure Fitness

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functionaldrinks zenithinternational newsletter Page 8 Issue 186 15 June 2010

functionaldrinks in brief offering, a calorie-free stevia-based beverage mix featuring electrolytes.Also available in strawberrykiwi and grape flavours, a box of seven 9g sachets has a suggested retail price of US$3.29. Hain Celestial Group has introduced a range of kombucha drinks under the name Celestial Seasonings. Featuring a blend of fruits, herbs, botanicals and lighting sparkling, the fermented tea varieties include: Digestion (Meyer Lemon Ginger with prebiotics);Antioxidant (Superfruit containing açaí, goji and pomegranate); Metabolism (Berry Guava with green tea extracts and B vitamins); Energy (Pomelo Citrus with B vitamins and ginseng) and Super Green (Tropical Blend with spirulina for concentrated green food nutrients). One Natural Experience has announced the addition of O.N.E. Active Coconut Water to its line. In addition to its naturally isotonic coconut water base, the new drinks contain ginkgo biloba, ginseng and catuba, and are targeted towards sports enthusiasts and other active consumers alike. Launching in June 2010, there will be three flavour variants: Grape/Berry; Lemon/Lime and Cranberry/Grapefruit. Packaged in 16.9oz Tetra Pak cartons, these will carry a suggested retail price of US$1.99.

Also in April 2010, Ganeden Biotech, producer of the probiotic strain GanedenBC30 which had been looking to include its patented probiotics in an enhanced milk line for some time, communicated news of the unveiling of a probiotic range of milk products by family-owned Guernsey Farm Dairy.

World

Lifeway Foods has unveiled a new Green Kefir with Phytoboost offering in kiwi-passion fruit and pomegranate-açaí-blueberry flavours.This combines the company's proprietary blend of phytonutrients that reportedly delivers the antioxidant power of 10 green vegetables and green tea extract in a single serving. USDA certified organic, 32oz bottles are available for US$4.49. White Horn Beverage LLC has announced that it has expanded the distribution of its antiageing energy shot, reportedly the first such product of its kind, through an agreement with New York-based Xelent Distributors.This will see the shot become available across the New York metropolitan area as well as six additional cities East of the Mississippi River.

North Korea: Announced by its KCNA national news agency, the North Korean beverage market has seen the addition of an anti-oxidation drink by the Moranbong Carbonated Fruit Juice Joint Venture Company.With claims of multiplying brain cells as well as improving skin health, the new proposition contains 60 types of microelements extracted from over 30 species of plants.

functionaldrinks

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Editor: Jenny Foulds Deputy Editor: Cecilia Martínez Núñez Contributors: Charmaine Holmes Market Intelligence Director: Esther Renfrew functionaldrinks is issued 25 times a year and is only available by subscription: electronic PDF format only £495; hard copy and PDF £595* *VAT chargeable on electronic format to UK companies and EC companies not registered for VAT

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At the end of April 2010, NVE Pharmaceuticals announced the latest addition to its Stacker2 energy line in the form of a Stacker2 Vitamin Shot. The five variants - Hangover Helper, Self Defense, Joint Fit, Rest & Relaxation and Prolong Pressure are formulated with a combination of ingredients that support the body's defences.

The International Bottled Water Association (IBWA), in association with Beverage Marketing Corporation (BMC), has released global bottled water as well as other soft drink category statistics for 2009. In terms of the functional categories, sports drinks declined by 12.3%, vitamin waters by 8.8%, whilst energy drinks and RTD teas experienced modest gains of 0.2% and 1.2% respectively during the year.

zenithinternational newsletter

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US supermarket chain Winn-Dixie has unveiled a new line of private-label yogurts designed to appeal to consumers looking for added benefits from their dairy products.Winn-Dixie Organic Active Yogurts are all-natural and certified both organic and kosher.They feature pre- and probiotics for digestive health as well as omega-3 for heart health, bone-building calcium and vitamin D, in addition to 3g of fibre per serving.

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No part of this periodical may be reproduced in any form, copied or stored electronically without prior permission in writing from the publisher. Every effort is made to verify all information published, but Zenith International cannot accept responsibility for any errors or omissions or for any losses that may arise as a result.

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